This Budget was Rishi Sunak’s 15th major announcement since his first ever Budget, just under a year ago. During this period, the pandemic has dominated the Chancellor’s actions and this was true of his latest Budget. To no small degree the framework for Mr Sunak’s latest appearance at the despatch box had been set by the data-dependent road map outlined by Prime Minister Boris Johnson 9 days before the Budget.
The Budget highlights
- Extended Stamp Duty holiday from March 31st – June 30th for property purchases up to £500,0000.
- Ongoing smaller Stamp Duty holiday for purchases up to £250,000 to end of September to avoid the ‘cliff edge’.
- New government scheme to encourage home ownership – underwriting high loan to value mortgages to help buyers get on the ladder with 5% deposits.
- For the two years from April 2021, companies investing in qualifying new plant and machinery will benefit from a 130% first-year capital allowance.
- Furlough scheme extended until the end of September.
- The main rate of corporation tax will be increased to 25% from April 2023 for companies with profits at least £250,000. At the same time, a new small companies’ rate of 19% will apply to companies with profits up to £50,000.
- Business rates 100% reduction extended until June.
- 5% VAT reduction extended by 6 months.
- The self-employed income support scheme will also be extended at its current level with a fourth grant covering the period February to April. A fifth grant will cover the period May to September, but this will be at a lower level for those who have seen less than a 30% drop in turnover.
- The personal income tax allowance will rise to £12,570 and the higher rate threshold will be £50,270 for 2021/22 and both will then be frozen for the next four years.
- No additional alcohol duty, and planned fuel duty hike scrapped.
- Universal Credit uplift to continue for 6 months.
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